Bloomberg - Georgia among low-risk countries
By Tea Mariamidze
Friday, April 21
The United States-based privately-held financial software, data, and media company Bloomberg has released its Global Risks Map, assessing the threats world’s countries are facing, wherein Georgia is listed among the low-risk countries.
The map is made according to 29 indicators, including financial, economic and political risks that investors face.
Four main components are allocated on the map: reserves, unemployment, inflation and currency volatility in a particular country.
The general risk indicator is assessed from 0 to 100. The higher the percentage, the lower the risk is.
According to the map, the unemployment risk factor in Georgia has been assessed with 11.4%, inflation with 6,2% and reserve stockpiles with 13.6%.
Reserve stockpiles shows total foreign reserves (excluding gold) held by each country's central bank as a percentage of gross domestic product.
“They effectively act as a cushion against economic shocks, such as hyperinflation and currency depreciation, that could be triggered by external or internal events,” Bloomberg says.
As for unemployment, the 2017 estimates by the International Labor Organization for those in the labor force apply to people aged 15+.
“Unemployment can serve as a proxy for the overall health of the economy. Long-term high unemployment levels eventually lead to less spending power among consumers, lower tax revenues for governments and possible social unrest,” Bloomberg reports.
Russia has been listed among the low-risk countries, while Ukraine and Turkey are average-risk countries.
Hong Kong, Switzerland, Singapore, Saudi Arabia and Taiwan top the lowest-risk countries list.
